We're so confident of our products that we provide no hassle product exchange.
WGU Financial-Management Exam Overview:
| Certification Vendor: | WGU |
|---|---|
| Exam Name: | WGU Financial Management VBC1 |
| Exam Number: | VBC1 / Financial-Management |
| Exam Duration: | 120 - 180 |
| Exam Format: | Calculation Questions, Scenario-Based Questions, Multiple Choice |
| Certificate Validity Period: | Valid until program completion |
| Passing Score: | 65% |
| Related Certifications: | WGU Bachelor of Science in Business Administration WGU Bachelor of Science in Accounting |
| Available Languages: | English |
| Exam Price: | Included in tuition fee |
| Real Exam Qty: | 58 - 86 |
| Recommended Training: | WGU Course Materials WGU Learning Resources |
| Exam Registration: | WGU Student Portal |
| Sample Questions: | WGU Financial-Management Sample Questions |
| Exam Way: | Online proctored exam, taken remotely via WGU testing platform |
| Pre Condition: | Completion of prerequisite business courses; open to enrolled WGU students |
| Official Syllabus URL: | https://www.wgu.edu/course/vbc1-financial-management.html |
WGU Financial-Management Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Financial Markets and Corporate Objectives | 15% | - Types of financial markets and instruments - Role of financial institutions - Goal of the firm: shareholder wealth maximization |
| Topic 2: Capital Budgeting | 10% | - NPV, IRR, payback period, profitability index - Cash flow estimation and project evaluation |
| Topic 3: Risk and Return | 12% | - Beta and Capital Asset Pricing Model - Portfolio risk and diversification - Systematic vs unsystematic risk |
| Topic 4: Time Value of Money | 18% | - Discounted cash flow valuation - Present value, future value, annuities, perpetuities - Effective vs nominal interest rates |
| Topic 5: Capital Structure and Financing | 10% | - Leverage and cost of capital - Dividend policy and payout decisions |
| Topic 6: Valuation of Securities | 15% | - Cost of capital components - Stock valuation: dividend growth model, CAPM - Bond valuation, yield to maturity, risk characteristics |
| Topic 7: Financial Statement Analysis | 20% | - Income statement, balance sheet, cash flow statement - Ratio analysis: liquidity, profitability, solvency, efficiency - Common-size and trend analysis |
WGU Financial Management VBC1 Sample Questions:
What distinguishes free cash flow to equity (FCFE) from free cash flow to the firm (FCFF)?
- A. FCFE is distributable only to debt holders, whereas FCFF is distributable only to equity holders.
- B. FCFE represents the total cash flow from operations that is available at the end of the period.
- C. FCFE includes depreciation, amortization, and other non-cash expenses, while FCFF does not.
- D. FCFE measures cash distributable to equity holders after all obligations are met, including debt payments.
Correct Answer: D 🗳️
Explanation: Only visible for TopExamCollection members. You can sign-up / login (it's free).
Which type of security has voting rights associated with it?
- A. Secured bond
- B. Convertible note
- C. Preferred stock
- D. Common stock
Correct Answer: D 🗳️
Explanation: Only visible for TopExamCollection members. You can sign-up / login (it's free).
What does a beta of less than 1 signify in the capital asset pricing model (CAPM)?
- A. The investment is risk-free.
- B. The investment has higher risk than the market.
- C. The investment has lower risk than the market.
- D. The investment has a return that is independent of the market.
Correct Answer: C 🗳️
Explanation: Only visible for TopExamCollection members. You can sign-up / login (it's free).
What is a primary goal of managing accounts receivable through credit policies?
- A. To eliminate accounts receivable entirely
- B. To transition all sales to cash-only transactions
- C. To maximize sales regardless of cash flow impact
- D. To balance customer convenience with the firm's cash flow needs
Correct Answer: D 🗳️
Explanation: Only visible for TopExamCollection members. You can sign-up / login (it's free).
What is the usual impact of high asset tangibility on capital structure?
- A. Preference for hybrid securities to leverage tangible assets
- B. Increased debt capacity due to assets serving as collateral
- C. Easier access to equity markets due to tangible collateral
- D. Higher cost of debt due to increased risk of asset value fluctuation
Correct Answer: B 🗳️
Explanation: Only visible for TopExamCollection members. You can sign-up / login (it's free).
By Vincent
